Assessment of Objective and Subjective Arbitrability Based on the Factual Nature of a Claim; Rights In Rem versus Contractual Obligations

Ruling of the Regional Court of Budapest Ref. No. 13.Gf.40.483/2007/7 delivered in 2008

Rationes Decidendi:

Decisive for determining whether an arbitration agreement applies to a dispute is the actual substance of the claim (facticity) and not the formulation of the text of the complaint.
If a claim is raised in respect of a right in rem (in this particular dispute in respect of the ownership of a share in real estate), which in this case would not be subject to an arbitration agreement, but in fact concerns a contractual obligation arising under a contract for work, which contains an arbitration clause, a [general/state] court dismisses the complaint and refers the parties to arbitration.

keywords
jurisdiction
rights in rem
contractual claim
contractual agreement
contractual obligation
contract for work
price of work
real estate
ownership
nature of claim
substance of the claim
arbitrability
arbitration clause
reject the complaint
actual state of affairs
facticity
about the authors

Univ. Professor, Dr.iur., Mgr., Dipl. Ing. oec/MB, Dr.h.c. Lawyer admitted and practising in Prague/CZE (Branch N.J./US), Senior Partner of the Law Offices Bělohlávek, Dept. of Law, Faculty of Economics, Ostrava, CZE, Dept. of Int. and European Law, Faculty of Law, Masaryk University, Brno, CZE (visiting), Chairman of the Commission on Arbitration ICC National Committee CZE, Arbitrator in Prague, Vienna, Kiev etc. Member of ASA, DIS, Austrian Arb. Association. The President of the WJA – the World Jurist Association, Washington D.C./USA.

e-mail: office@ablegal.cz